If an Industry's Long-Run Per-Unit Costs Decrease as Its Output

question 304

Multiple Choice

If an industry's long-run per-unit costs decrease as its output increases then

• A) the firm's long-run economic profits must be less than zero.
• B) the firm is most likely a decreasing-cost industry.
• C) the firm is most likely an increasing-cost industry.
• D) the firm is most likely a constant-cost industry.

Be aware of the difficulties in exploiting market inefficiencies due to behavioral biases.

Understand the impact of investor behavior on portfolio performance and trading volume.

Appreciate the limits to arbitrage in the presence of behavioral biases and market inefficiencies.

Understand and apply the VALS framework for consumer segmentation.

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Definitions:

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